Muyuan Foods (SZ:002714) Huaan Securities·2025-03-20 03:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has exceeded expectations for its 2025 output plan, with costs dropping to 12.9 yuan per kilogram as of February 2025 [1][5] - In 2024, the company achieved a revenue of 137.95 billion yuan, a year-on-year increase of 24.4%, and a net profit of 17.88 billion yuan, marking a return to profitability [3][9] - The company plans to slaughter 72-78 million commodity pigs and 8-12 million piglets in 2025, with a strong foundation laid by a 12.2% year-on-year increase in breeding sows [3][7] Summary by Sections Financial Performance - In 2024, the company reported a net profit of 17.88 billion yuan, with a proposed cash dividend of 5.72 yuan per 10 shares [2][3] - The company's total assets at the end of 2024 were 187.65 billion yuan, with a debt-to-asset ratio of 58.7%, down 3.43 percentage points year-on-year [3][9] - The company expects to achieve a revenue of 150.66 billion yuan in 2025, with a net profit of 22.46 billion yuan, reflecting a year-on-year growth of 25.6% [9] Production and Sales - The company plans to increase its pig output to 90.5 million, 95.9 million, and 100.49 million from 2025 to 2027, with commodity pig output projected at 78 million, 81 million, and 83.43 million respectively [7] - The company has achieved a significant increase in piglet sales, with 2.19 million sold in January-February 2025, accounting for 16% of total output [3][6] Cost Management - The company successfully reduced its breeding costs to approximately 13.1 yuan per kilogram in Q4 2024, with a target to lower it to 12 yuan per kilogram in 2025 [5][6] - The cost of weaned piglets has reached 260-270 yuan per head, providing a competitive advantage in the industry [3][5]